If your sshd has quit in your Droplet you can access the console right from the Droplet view in your account: http://cloud.digitalocean.com

I am having the same issues, had the same problem while working on my project.
Went in one morning and tried to connect to be droplet via Putty and connection just keeps timing out. No major changes had been made.
I could still access the server via the digital ocean dashboard console but not via putty.

The first time this happened i destroyed the original droplet and started again but now this has happened again.

Does anyone know if this is a known issue at the momemt?